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Moog Reports First Quarter Sales up 3%

EAST AURORA, NY--(Marketwire - Jan 25, 2013) - Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) today announced first quarter sales of $621 million, up 3% from a year ago. Net earnings were $34 million and earnings per share were $.75, both 6% lower compared to last year's first quarter on lower industrial sales.

Aircraft segment sales of $252 million were up 9% from last year with gains in both military and commercial markets. Commercial aircraft sales increased 16% compared to a year ago. Strong OEM production sales of $75 million included a 47% increase in sales to Boeing. Commercial aircraft aftermarket sales of $27 million were 5% higher.

Military aircraft sales were up 5% to $150 million. Military aftermarket sales were 17% higher, at $57 million, and OEM sales were unchanged.

Space and Defense sales at $87 million were down marginally from a year ago. Sales in satellite-related businesses were stronger and helped by recent acquisitions. This increase offset weaker launch vehicle and NASA sales. Sales for ground vehicle and security and surveillance systems were also soft during the quarter.

Industrial Systems sales of $148 million were down 6% from a year ago. Sales of simulation and test systems were 3% higher, at $33 million, while industrial automation sales were down 4% and sales of wind power controls were down 36%.

Components Group sales of $99 million were very strong, up 13% in the quarter. Sales of energy market products, including marine sales, more than doubled to $24 million compared to a year ago. Medical components sales were 8% higher partially offsetting lower sales into defense and industrial markets.

Medical Devices sales were unchanged at $35 million. Pump sales were down while sales of administration sets were up 12%.

Twelve month consolidated backlog was $1.3 billion, unchanged from a year ago.

The Company also updated its projections for fiscal 2013. Given the results of the first quarter, the Company's revised forecast includes sales of $2.62 billion, a net earnings range of $160 million to $165 million and a range of $3.50 to $3.60 for earnings per share. The midpoint of the range, at $3.55, represents a 7% increase in EPS.

"We're off to a slow start in 2013," said John Scannell, CEO. "The weakness in the major economies around the world is affecting our industrial business. On the other hand, the aircraft market is strong. We have moderated our forecast for the year slightly but we are still projecting growth in both sales and earnings in 2013, despite the headwinds in our industrial markets."

Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog's high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment. Additional information about the company can be found at www.moog.com.

Cautionary Statement

Information included or incorporated by reference in this report that does not consist of historical facts, including statements accompanied by or containing words such as "may," "will," "should," "believes," "expects," "expected," "intends," "plans," "projects," "approximate," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume" and "assume," are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. These important factors, risks and uncertainties include:

the markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate

we operate in highly competitive markets with competitors who may have greater resources than we possess

we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs

we make estimates in accounting for long-term contracts, and changes in these estimates may have significant impacts on our earnings

we enter into fixed-price contracts, which could subject us to losses if we have cost overruns

if our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted

contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment

the loss of Boeing as a customer or a significant reduction in sales to Boeing could adversely impact our operating results

our new product research and development efforts may not be successful which could reduce our sales and earnings

our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete

our business operations may be adversely affected by information systems interruptions or infringements

government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business

the failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages

our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs

we are involved in various legal proceedings, the outcome of which may be unfavorable to us

These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. We disclaim any obligation to update the forward-looking statements made in this report.

Moog Inc.

CONSOLIDATED STATEMENTS OF EARNINGS

(dollars in thousands, except per share data)

Three Months Ended

December 29,

December 31,

2012

2011

Net sales

$

620,803

$

600,618

Cost of sales

428,103

415,483

Gross profit

192,700

185,135

Research and development

32,328

29,190

Selling, general and administrative

105,075

95,798

Interest

8,596

8,546

Other

(2,370

)

(1,348

)

Earnings before income taxes

49,071

52,949

Income taxes

14,953

16,576

Net earnings

$

34,118

$

36,373

Net earnings per share

Basic

$

0.75

$

0.80

Diluted

$

0.75

$

0.80

Average common shares outstanding

Basic

45,353,332

45,211,734

Diluted

45,708,289

45,679,965

MoogInc.

CONSOLIDATED SALES AND OPERATING PROFIT

(dollars in thousands)

Three Months Ended

December 29,

December 31,

2012

2011

Net Sales

Aircraft Controls

$

252,281

$

231,080

Space and Defense Controls

86,465

88,394

Industrial Systems

147,976

158,085

Components

99,275

88,147

Medical Devices

34,806

34,912

Net sales

$

620,803

$

600,618

Operating Profit and Margins

Aircraft Controls

$

31,075

$

24,827

12.3

%

10.7

%

Space and Defense Controls

8,228

12,743

9.5

%

14.4

%

Industrial Systems

9,047

15,826

6.1

%

10.0

%

Components

18,846

15,029

19.0

%

17.0

%

Medical Devices

1,602

1,598

4.6

%

4.6

%

Total operating profit

68,798

70,023

11.1

%

11.7

%

Deductions from Operating Profit

Interest expense

8,596

8,546

Equity-based compensation expense

3,891

4,105

Corporate expenses and other

7,240

4,423

Earnings before Income Taxes

$

49,071

$

52,949

Moog Inc.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

December 29,

September 29,

2012

2012

Cash

$

152,133

$

148,841

Receivables

744,356

744,551

Inventories

551,700

538,262

Other current assets

120,862

117,254

Total current assets

1,569,051

1,548,908

Property, plant and equipment

549,171

546,179

Goodwill and intangible assets

972,188

975,049

Other non-current assets

35,990

35,771

Total assets

$

3,126,400

$

3,105,907

Short-term borrowings

$

77,537

$

90,774

Current installments of long-term debt

64

3,186

Contract loss reserves

42,463

48,428

Other current liabilities

502,621

521,488

Total current liabilities

622,685

663,876

Long-term debt

681,572

670,662

Other long-term liabilities

467,362

466,579

Total liabilities

1,771,619

1,801,117

Shareholders' equity

1,354,781

1,304,790

Total liabilities and shareholders' equity

$

3,126,400

$

3,105,907

Contact Information

Contact Ann Marie Luhr
716-687-4225

MOOG INC.,
EAST AURORA
NEW YORK 14052
TEL-716/652-2000
FAX -716/687-4457